Estate Planning Updates: What Documents Need to Be Reviewed?

Spring is a great time to refresh and reorganize different aspects of life—including your estate plan. Just as you might declutter your home to clear out unnecessary items and make space for what matters, reviewing estate planning documents can help keep them relevant to your current situation. 

Estate planning isn’t something to set and forget. Life changes, tax laws evolve, and financial situations shift over time. Without regular updates, documents may no longer reflect your intentions, which could create complications when they are needed. 

Reviewing key estate documents—such as wills, trusts, beneficiary designations, and powers of attorney—can help clarify financial and legacy plans. Taking a closer look at these areas may provide a clearer picture of whether updates are needed based on any recent changes. 

Why Estate Planning Updates Matter 

An estate plan is designed to reflect financial and personal wishes, but over time, documents may become outdated. Changes in family dynamics, financial situations, or tax laws can create discrepancies between an estate plan and current circumstances. Without periodic reviews, documents may no longer reflect intended decisions, which could lead to inefficiencies or complications in asset distribution. 

Several life events and financial changes often prompt estate plan updates, including: 

• Marriage, divorce, or remarriage – Relationship changes can affect beneficiary designations, inheritance plans, and legal rights to assets. 

• Birth or adoption of children/grandchildren – Adding new family members may require adjustments to guardianship designations, inheritance plans, and trust structures. 

• Changes in state or federal tax laws – Tax regulations evolve over time, and updates may be necessary to account for changes in estate tax thresholds, exemptions, or gifting rules. 

• Significant financial changes – Receiving an inheritance, selling a business, or experiencing a major shift in wealth may require adjustments to asset protection strategies or charitable giving plans. 

• Death or incapacitation of named executors, trustees, or beneficiaries – If key individuals named in an estate plan are no longer available to serve in their roles, alternative choices may need to be designated. 

Reviewing estate planning documents in light of these events can help determine whether updates are needed. Taking time to revisit key areas may provide a clearer picture of whether current plans still align with overall financial and legacy goals. 

Key Estate Planning Documents to Review and Update 

Estate planning involves several critical documents that outline how assets are managed and distributed. Over time, these documents may require updates due to financial changes, shifts in family dynamics, or evolving legal requirements. Reviewing the following estate planning documents can help determine whether adjustments are needed. 

Will and Trusts 

Why it matters: Wills and trusts establish how assets are distributed and who is responsible for managing them. If outdated, they may not reflect current financial situations or family structures. 

What to check: 

• Does the will or trust still reflect current financial circumstances and family structure? 

• Are the named executors and trustees still appropriate choices? 

• If a trust is part of the estate plan, has it been properly funded with assets? 

Beneficiary Designations 

Why it matters: Certain assets—such as retirement accounts, life insurance policies, and annuities—bypass the will or trust and pass directly to designated beneficiaries. Keeping these designations current can help avoid inconsistencies in asset distribution. 

What to check: 

• Have beneficiary designations been updated following major life events such as marriage, divorce, or the birth of a child? 

• Do beneficiary designations align with the overall estate plan? 

Powers of Attorney (Financial & Healthcare) 

Why it matters: A power of attorney (POA) grants authority to a designated individual to make financial or healthcare decisions if needed. If outdated, these documents may not reflect current preferences or circumstances. 

What to check: 

• Is the named power of attorney still the preferred choice? 

• Have legal or healthcare preferences changed since the last update? 

Advance Healthcare Directive (Living Will) 

Why it matters: This document outlines medical treatment preferences in case of incapacitation. Without clear instructions, medical decisions may default to family members or healthcare providers. 

What to check: 

• Does the directive clearly reflect current medical treatment preferences? 

• Have these preferences been discussed with loved ones and the designated healthcare proxy? 

Letter of Intent and Digital Estate Planning 

Why it matters: A letter of intent provides instructions for distributing assets and handling non-financial matters, while digital estate planning addresses access to online accounts and digital assets. 

What to check: 

• Does the letter of intent include instructions for distributing assets, charitable bequests, or digital account access? 

• Are important passwords and financial accounts stored securely and accessible to the appropriate individuals? 

Common Estate Planning Mistakes to Avoid 

Estate planning involves more than drafting documents—it requires ongoing review to align with financial goals and family circumstances. Certain oversights can create complications, making it important to address potential gaps. Below are some common estate planning mistakes to consider. 

1. Not Reviewing Documents Regularly
   Estate planning documents can become outdated due to life events, financial changes, or new laws. Without periodic reviews, an estate plan may no longer reflect current intentions, which could lead to unintended outcomes. Checking documents regularly, especially after major life changes, can help identify areas that need updates. 
2. Relying Solely on a Will When a Trust Might Be More Effective
   A will directs asset distribution, but it does not avoid probate, which can be a lengthy and public process. In some cases, a trust may provide a more structured way to manage and transfer assets, offer privacy, or reduce administrative burdens. Determining whether a trust fits into an estate plan can help clarify long-term asset management. 
3. Forgetting to Coordinate Retirement Accounts and Insurance Policies with Estate Plans
   Retirement accounts and life insurance policies pass directly to named beneficiaries, regardless of what a will or trust states. If beneficiary designations are not coordinated with an estate plan, distributions may not align with overall intentions. Reviewing these designations regularly helps maintain consistency across estate planning documents. 
4. Failing to Plan for Estate Taxes and Potential Legal Hurdles
   Estate taxes and legal complexities can affect how assets are transferred. Without planning, certain assets may be subject to higher tax burdens or legal delays. Understanding tax implications and legal considerations in advance can help structure an estate plan in a way that accounts for potential challenges. 
5. Not Discussing Estate Plans with Heirs, Trustees, or Beneficiaries
   An estate plan outlines financial and legacy intentions, but if key individuals are unaware of their roles or responsibilities, it can create confusion. Discussing estate planning decisions with heirs, trustees, or beneficiaries can provide clarity and reduce the likelihood of misunderstandings. 

Steps to Organize and Store Your Estate Documents 

Estate planning involves more than drafting documents—it also requires organization and accessibility. Keeping documents in order helps make sure they are available when needed and that designated individuals know where to find them. The following steps outline ways to organize and store estate planning documents effectively. 

Create a Checklist of Essential Estate Planning Documents 

An estate plan often includes multiple documents, each serving a different purpose. Creating a checklist can help track what is in place and what may need updating. Common documents to include:

• Will and any trusts 

• Power of attorney (financial and healthcare) 

• Advance healthcare directive (living will) 

• Beneficiary designations for retirement accounts and life insurance policies 

• Deeds, titles, and financial account information 

• List of digital assets, passwords, and account access instructions 

Securely Store Documents in an Accessible Place 

Estate planning documents should be stored securely while remaining accessible to those who may need them. Options for storage include: 

• A safe deposit box (with access granted to a trusted individual) 

• A fireproof and waterproof home safe 

• With an estate planning attorney 

• Secure digital storage with appropriate backups 

Keeping financial and legal documents organized in a central location can simplify the process for executors or beneficiaries. 

Communicate with Trusted Individuals 

An estate plan can only be carried out effectively if key individuals know where to find the necessary documents. It may be helpful to share information with: 

• Executors or trustees responsible for managing the estate 

• Powers of attorney designated to make financial or medical decisions 

• Beneficiaries who may need to access information about assets or accounts 

Providing instructions on where documents are stored and who to contact for legal or financial matters may help reduce confusion. 

Schedule Regular Reviews and Updates 

Estate planning documents can become outdated due to life events, financial changes, or evolving laws. Reviewing them every two to three years or after major life changes may help keep them aligned with current circumstances. Common reasons for an update include: 

• Marriage, divorce, or remarriage 

• Birth or adoption of children/grandchildren 

• Significant financial changes, such as receiving an inheritance or selling a business 

• Death or incapacitation of a named executor, trustee, or beneficiary 

• Changes in tax laws that may affect the estate plan 

Organizing and storing estate planning documents in a secure, accessible manner allows designated individuals to locate them when needed. Keeping key individuals informed and scheduling periodic reviews can help maintain an estate plan that reflects current circumstances. 

 

Next Steps: Getting Professional Guidance 

Estate planning involves legal and financial considerations that may require periodic adjustments. Keeping documents structured appropriately and up to date can help maintain alignment with long-term objectives. Working with an estate planning attorney or financial advisor may provide insight into tax considerations, asset distribution, and document coordination. 

For those reviewing their estate plans, a structured approach can help assess whether updates are needed. A checklist or consultation may assist in identifying areas that require attention and determining next steps. 

Spring is an opportunity to revisit estate planning documents. Download the Retirement Spring Cleaning Checklist to get started or contact Liberty Group to schedule a consultation.